Home Loan EMI Calculator: Plan Your Dream Home with Financial Clarity
Whether you are buying your first apartment or constructing a house from the ground up, our Home Loan EMI calculator helps you visualize your repayment journey. Discover how adjusting your loan amount, tenure, and interest rate impacts your monthly budget, and take total control of your long-term financial commitments before you sign any bank documents.
Home Loan EMI Calculator
Yearly Repayment Schedule
| Year | Principal Paid | Interest Paid | Total Paid | Balance |
|---|
How to Use This Calculator
Borrowing doesn’t have to be overwhelming. Enter your details below to project your loan repayment schedule:
- Loan Amount (₹): Enter the total amount you plan to borrow from the bank or housing finance company.
- Interest Rate (p.a %): Enter the current annual interest rate offered by your lender. Home loan rates in India typically range from 8.5% to 10% depending on your credit score and the repo rate.
- Loan Tenure (Years): Choose how long you need to repay the loan. Pro tip: A longer tenure reduces your monthly EMI, but significantly increases the total interest you pay to the bank! Try to keep it between 15 to 20 years.
Understanding the Math: How Do We Calculate This?
Your Equated Monthly Installment (EMI) consists of two parts: the principal amount and the interest on the outstanding balance. In the initial years, a large portion of your EMI goes toward paying the interest, while in the later years, it goes toward the principal.+1
For the mathematically curious, the EMI is calculated using the standard reducing balance formula:
Where:
- E = Equated Monthly Installment (EMI)
- P = Principal Loan Amount
- R = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)
- N = Total Number of Monthly Installments (Years × 12)
Why Calculate Your EMI?
- Budget Planning: Knowing your exact EMI helps you ensure that your total debt obligations stay within the recommended limit (ideally not more than 40% of your in-hand monthly income).
- Interest Analysis: Visualizing the “Total Interest” section shows you the true cost of your property, revealing how much extra you are actually paying the bank.
- Prepayment Strategy: By understanding your amortization schedule, you can plan yearly prepayments (like using your annual bonus) to drastically reduce your loan tenure and save lakhs in interest.
Important Disclaimer (Please Read Carefully)
Standard Home Loan Warning: Interest rates, processing fees, and lending policies are subject to change based on the Reserve Bank of India (RBI) guidelines and individual bank policies. Read all loan-related documents carefully.
Calculator Limitations:
The ArthVeda Home Loan EMI Calculator is provided for educational and illustrative purposes only. The calculated figures are based on the inputs provided by the user and assume a fixed interest rate for the entire tenure. Real-world home loans often have floating interest rates that fluctuate over time. Furthermore, this tool does not account for processing fees, documentation charges, home insurance premiums, or prepayment penalties. This tool does not guarantee loan approval and should not be construed as certified financial advice. Always consult with your bank or a financial advisor before finalizing a loan agreement.